Buying A Property
I am a new investor looking for my first property. I don't want to over analyze everything but I don't want to be taken advantage of. A friend referred me to a company that deals with houses with equity in them. You buy a house from them with %100 financing and you get $10,000 at closing. You do have to put up $1300. 300 for an appraisal and 1000 to the seller. They said it will take 2 weeks to close. So my credit check out to get %100 financing. Ok, here is where I need advice. They want my $1300 in cash not cashier's check or money. They said cash will save time to distribute to the seller and appraiser. They have a house for $153,000 which I did not want to buy in the price range. They said the owner is not available so I cannot walk through it. But they have appraisal saying there are no problems and the house practically new. Why would I need to purchase another appraisal if they have one? They are saying I will get 8% rate on this $153,000 and there is not PMI involved. Please Help!!
Sounds like they're trying to rush you into this...
I can understand the appraisal, most of them I've dealt with required another one.
8% rate? What does that mean? The interest rate on the loan? That's kinda high...
What's the house worth? What do you want to do with it? Rental? What part of town is it in? If I can't walk thru a house, I DON'T buy it. I've been burned by inspectors before. Plus, you're letting the SELLERS inspector tell you there's nothing wrong with it. That's a red flag, right there. Here in Atlanta there was one of them wholesaler co.'s that was doing exactly what you're saying these guys were doing. Giving their buyers cash back at closing, taking care of all the "Details" for them, and this company ended up skipping town with a LOT of people's money, and a LOT of people lost money because they trusted what they were being told, and it turned out not to be true.
And wanting CASH? hhhmmmm These people sound might fly-by-night, to me!
ummm...scam? Red Flags going up all over the place...
Cash, no check? That is a first!
No walk-through?
Have an appraisal, but you need to pay for another one?
Strike 1!
Strike 2!
Strike 3!
Get out!
Thanks, I did not want to just jump into something because I will get that cash back but I also do not want to start out in the hole.
Do not walk, run away from these guys. This is scam big time.
Ok, tell me this, I want some rental properties. What is best for me to start out with rehabs or foreclosures. I know there is alot of work with foreclosures as well as out of pocket expenses. There are several vacant properties in my subdivision I would love to rent